This is the six in a series of commercial real estate case studies shared by A.CRE. These case studies are meant to help you practice mastering real estate financial modeling. Hamilton Park VIII puts you in the role of a development associate at an international industrial development firm, tasked with assessing the fair value of […]
Researchers at the University of Chicago recently released the results of an important study that evaluated GPT-4’s financial analysis capabilities by predicting future earnings from financial statements. By using Chain-of-Thought (CoT) reasoning, the AI model (i.e. in this case a GPT-4 powered custom GPT) not only was capable of analyzing financial data, but also actually […]
In commercial real estate, there are a few generally accepted methods for appraising (or valuing) real property. The three most common are the Cost Approach, the Sales Comparison Method, and the Income Approach. The Income Approach includes two methods, the simpler of the two is the Direct Capitalization method, which this post will cover. The […]
In our industry (commercial real estate), the ability to quickly evaluate investment opportunities is crucial for staying competitive. I know I’ve found in my professional career, that having a clear framework for evaluating – and then either passing or spending more time on – investments is crucial to managing an efficient pipeline. Thus, being able […]
When modeling real estate investments, industry practice is generally to stop at before-tax cash flow, rather than after-tax cash flow. And this makes sense in most instances. No two owners of real estate have the exact same tax situation and no two properties necessarily have the exact same tax treatment. So comparing the projected returns […]
At A.CRE, we’ve built dozens of custom GPTs for internal and external purposes. Some of the GPTs have general application, while others are custom GPTs specifically for commercial real estate. And among those custom GPTs specifically for CRE, we’re working to build the world’s largest library of real estate analyst GPTs. A few weeks ago, […]
In the fast-moving world of generative AI (gen AI), staying up to date on the latest advancements in AI is crucial for professionals in every field, but especially in commercial real estate. At A.CRE, we’re committed to sharing what we view as the critical developments in AI and their practical applications to CRE. One such […]
Choosing the right commercial real estate attorney is crucial for the success of any real estate transaction. The right attorney can help you navigate the complexities of real estate law, ensure compliance, and protect your interests. Attorneys also play a vital role in drafting, reviewing, and negotiating contracts, conducting due diligence, and providing legal advice […]
Professionals in real estate development jobs, either working for themselves or their employer, create new places for people to live, work, shop, and play. This person typically is involved with the transaction from land sourcing through lease-up and is depended on by a host of stakeholders to insure the outcome of the project is a […]
This is the third in a series of commercial real estate case studies shared by A.CRE. These case studies are meant to help you practice to master real estate financial modeling. Just the Facts puts you in the role of a direct real estate investor analyzing the feasibility of purchasing a retail sale-leaseback from a […]
Recruiting for an entry-level position in real estate can be daunting, particularly for those entering this highly competitive field where experience is often prized above all. How does one ‘break through’ when traditional pathways seem blocked by the requirement of prior experience? In this article, we’ll explore practical tips and real-world advice on overcoming the […]
This is the second in a series of commercial real estate case studies shared by A.CRE. These case studies are meant to help you practice to master real estate financial modeling. The Renovo Tower Office Acquisition Case Study puts you in the role of an acquisitions professional needing to assess the viability of a value-add […]
I thought I’d share the real estate debt module I originally built for the ARGUS alternative in Excel. Most debt modules I’ve seen in real estate financial models only include the ability to model fully amortizing senior debt. Mike challenged me some time ago to come up with a more robust option, and this debt […]
Recently, we had an A.CRE reader ask us about the mechanics of Preferred Return distributions in our equity waterfall models with IRR hurdles. Specifically, he questioned the timing of when and how Preferred Return vs Return of Capital were distributed. In this blog post, I’ll share the response I gave him in order to help […]
This is the first in a series of commercial real estate case studies shared by A.CRE. These case studies are meant to help you practice to master real estate financial modeling. Presidio puts you in the role of an acquisitions professional needing to assess the viability of a value add apartment acquisition opportunity. Practice makes […]